Common use of Security Collateral Clause in Contracts

Security Collateral. 20.1 We may from time to time require you to provide collateral by way of a cash deposit or a bank guarantee with a bank licensed by SARB in a form as we reasonably require to secure your performance of obligations under this Agreement. All costs associated with procuring, entering and maintaining the security arrangements shall be incurred at your sole expense. The collateral shall be released to you after expiry or earlier termination of the Agreement i.e., upon completion of the applicable Chargeback period of either 180 days or 540 days, as the case may be. 20.2 The security maybe increased by us where we reasonably require, from time to time based on the risk assessment done by us on you.